Tesla’s list price cuts on the Model 3 and Model Y have generated a lot of controversy due to their scope. Some Chinese manufacturers have reacted immediately by lowering the prices of their electric models. Lately, Ford too announced a reduction in the list prices of its Mustang Mach-E, so far only in the US market.
The Volkswagen Group, on the other hand, does not intend to participate in what many have already dubbed “electricity price war“. In an interview with “Frankfurter Allgemeinen Sonntagszeitung” the new CEO of the German group, Oliver Bloomhe made his position very clear.
We have a clear pricing policy and an emphasis on reliability. We believe in the power of our products and brands. The goal is not to size at any cost. For me, all our ambitions are about adding value and profitable growth.
In short, the Volkswagen Group therefore claims to be very confident in the strength of their products. In addition, the company’s plan is to achieve profitable growth without putting all the effort into volumetric costs. So the message is clear: there will be no significant price cuts for electric vehicles to follow the path chosen by Elon Musk’s company.
Moreover, this strategy of cutting prices at all costs is “dangerous” from a business point of view, as it can have negative consequences on balance sheets. Volkswagen says no to electricity price war. Doubts about the strategy of the American brand also come from Fabrice Cambolive, recently appointed CEO of the Renault brand. Speaking to Automobilwoche, the manager emphasized that “if you reduce sales prices by 10% or more within a week, it will affect the residual value and hurt existing customers. Stability is important to us.“
All that remains is to wait to see how the market will behave and whether other manufacturers will try to follow the path of Tesla or they will do the same as the German group.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.